Buying sports car insurance can be expensive because of the exorbitant price tag of these vehicles. If you are shopping for insurance policies for your sports car, you want to get a rate that is sustainable in the long run. In this article, we discuss everything you need to know about sports car insurance.
What Is Sports Car Insurance?
Sports car insurance is an auto insurance policy that covers your damages if you are in an accident while driving your sports car. This type of insurance policy is designed specifically for sports cars.
When Do You Need Special Coverage?
You need special coverage insurance policies if you drive sports cars such as high-horsepower vehicles or vintage models that have become collector’s items.
What Do Insurance Companies Consider to Be Sports Cars?
Insurance companies have specific guidelines for qualifying sports cars. However, most insurers use the following criteria to classify vehicles as sports cars, according to Bankrate:
- Cars with two seats
- Cars with a soft back
- Cars smaller and lighter than a regular sedan
What Is the Depreciation Rate of a Sports Car?
The value of most popular cars depreciates quickly, and this is reflected in their insurance premiums. As the car’s value depreciates, its coverage also decreases. However, sports cars tend to hold their value really well, so they don’t depreciate as much as regular cars and can even gain value over time.
Is a Standard Insurance Policy a Good Fit for a Sports Car?
According to Benzinga, sports cars typically hold their value well because manufacturers produce them in very limited numbers. Insurance policies for regular vehicles might not be ideal for sports cars because of the differences in their depreciation rates. If you insure a sports car with a regular auto insurance, the coverage will reduce over time and may drop below the vehicle’s value.
When Should You Consider Gap Insurance?
You can consider purchasing gap insurance if you finance the purchase of your sports car. Sometimes, the gap between the coverage amount and the insured value may be worth getting gap insurance.
Disadvantages of Owning a Sports Car
The major disadvantage of owning a sports car is that some insurers have storage and usage limitations when insuring these cars. For example, your insurance provider may require the car to be kept in a locked garage or might only provide coverage for a specific number of miles per year.
What Types of Cars Are Covered?
Sports cars can come in a variety of forms, price points, and designs. Models produced by brands such as Ferrari, Bugatti, Lamborghini, Bentley, McLaren, Rolls-Royce, and Porsche are all considered sports cars. Many of these cars have six- or even seven-figure price tags.
Because of the exorbitant price tags of sports cars, many insurance companies don’t like covering them. Such expensive vehicles often carry massive claims if they get into an accident. It is less risky for insurance companies to instead sell their policies to drivers of sedans, minivans, and SUVs. So, expect to get very high quotes when you want to insure a high-powered vehicle or high-value sports car.
It may be cheaper to insure sports cars such as the Dodge Challenger SRT Demon, Dodge Viper, Nissan GT-R, and the Ford mustang. These sport cars cost less and are more common than higher-end sports cars, so they pose less risk to insurance companies. A clean driving record will also help you secure a less expensive premium.
What Types of Coverage Are Available for Sports Cars?
Sports cars can get the same level of coverage as regular cars, trucks, and vans. The following are the types of coverage you can purchase for a sports car:
- Collision: Coalition policies cover damage as a result of rollovers, hitting stationary objects, or impacting other vehicles.
- Comprehensive: Comprehensive policies cover damage from falling tree limbs, fire, water damage, hail, theft, and glass damage.
- Property damage liability: This policy covers damage to other people’s property.
- Bodily injury liability: This policy covers the cost of treating other people’s injuries and lost wages as a result of an accident.
- Medical payments and/or personal injury protection: The coverage for this policy depends on your state of residence, but it usually covers the cost of medical treatment if you are injured in an auto accident. You can use this coverage to pay for your health insurance deductibles, coinsurance, and copays.
- Uninsured underinsured motorist protection: This policy will cover your bills if an uninsured or underinsured driver damages your vehicle or causes you injury.
- Liability or no-fault insurance coverage: This coverage covers payment for property damage or bodily injury to another party who was involved in an accident with you.
- Gap or new car replacement insurance. Gap insurance will pay for the difference between what you owe on a financed car and the amount your insurer is willing to pay for a replacement. New car replacement insurance will cover the cost of buying an exact replacement car if your sports car is totaled.
Is Collision and Comprehensive Coverage Always Available for Classic Sports Cars?
Most traditional insurance providers may not provide collision and comprehensive coverage for classic sports cars. When they do, they typically have stringent limits on the payout you can get from the policy.
It is much better to approach a specialty insurer or an insurance company that can provide agreed value coverage or stated value coverage. Instead of insuring your car for a depreciating amount like a regular auto policy, a stated value or agreed value coverage policy insures your vehicle for a fixed amount, usually its actual cash value.
How Much Does Sports Car Insurance Cost?
The cost of insuring sports cars varies widely because of the large disparity in their price tags. For example, Benzinga says that the average cost of insuring a Nissan GTR is about $4000 per year, compared to a Honda Odyssey minivan that costs less than $1300 per year to insure. Ultimately, the cost of insuring a sports car depends on the vehicle’s actual value. According to The Zebra, other factors that can influence insurance rates for sports cars include the make and model, cylinders and horsepower, height, weight, and the potential risks associated with driving the car.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
https://www.benzinga.com/money/sports-car-insurance/
https://www.thezebra.com/auto-insurance/vehicles/sports-car-insurance/
https://www.bankrate.com/insurance/car/sports-car/
https://www.caranddriver.com/car-insurance/a31263168/what-is-gap-insurance-on-a-car/
https://www.caranddriver.com/car-insurance/a35913328/classic-car-insurance-new-jersey/
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